Long Beach California Real Estate Loans

Long Beach, Ca.  A few reflections on the current real estate market place, while awaiting Super Bowl 2009 and the Cardinals inevitable doom by being sucked up into the engines of the Steelers' finely machined aircraft; hey, didn't that cause a plane crash last week?

There are a couple  new trends in the universe of Foreclosures and REO properties.  Where, the unemployed and employed alike have begun to re-group and look at more options then just, "letting the house go back to the bank."  Where in the past a property may be foreclosed on without much of a fight from the financially  fatigued  and down trodden home owners; now, potentially hapless and homeless occupants are beginning to organize and take up the fight against the banks with a renewed gusto, frankly not seen since the stampede was on to buy the properties in the first place.

The sort of industry standards of dealing with the foreclosure problem, in recent history, can be reduced to the same old usual suspects:  allowing the foreclosure to go through, taking cash for keys, negotiating a loan modification, granting the property back to the bank with a deed in lieu of foreclosure, implementing a short sale, and utilizing special refinancing offered by banks for those in need, not to mention the bankruptcy options.  Now; however, resourceful attorneys finding weakness in the armor of the lenders have found a new type of law to practice.

You gotta fight for your rights!

One method that current home owners have adapted is to simply litigate against the lenders.  By fighting it out with the banks, home owners are finding that they can maintain more leverage against the lenders by both continuing to occupy the property; thus, saving on the monthly mortgage payment, while simultaneously retaining attorneys to represent them in court to prevent the entire process from consummating.  There have been cases wherein, the hard up lenders have not been able to procure the necessary note against the property; thus, allowing the homeowners to maintain ownership, permanently....debt free.

While driving by a client's home today,  I saw what first appeared to be a for sale by owner (F.S.B.O.) sign in the front yard of a neighbors home.  Upon calling the number on the posted sign, I met a certain gentleman who represents a company called, United First, who immediately invited me to a, "How to avoid being  foreclosed on seminar," and legal workshop.  The basic program offered by this group is that in lieu of the distressed home buyer paying the bank it monthly mortgage payments; that, they should pay an Attorney service instead!  Grant you, the price quoted to me over the phone was $1450.00/m (every month). Here, I would say that the jury is still out, I personally need to do so more due-diligence before recommending such a program, but I do not doubt that it is always better to have some type of legal representation.  

What does this money buy you?  According to, Sherman Lim, a representative of United First Foreclosure Relief (press link to watch 7 minute video),  it may  buy you up to two years of time in which you don't have to worry about having to move out of your home.  In other words, you can stay put in your own home buy retaining an army of litigators and financing them on a monthly basis. 

Damn the Torpedos, don't give up the ship (even though it is sinking rapidly)

Yet another method being utilized by the new homeless generation of Americans is simply to squat on the foreclosed home.  This method is actually being encouraged by certain members of Congress.   Remembering, that if not properly served, that it could take months or even years to evict a past home owner.  Especially, considering that many judges are ruling in favor of homeless families considering the whole big picture of America seeming like one big distressed property, these days. 

Foreclosure Suicides on the Rise

Definitely, committing suicide will not prevent foreclosure.   This just shows how stressful the whole process is and how difficult it is for some people to handle the crisis. As in this sad case; what the home owner did not know, is that it normally takes up to two years for an insurance Company to pay out on a policy wherein there has been a suicide by the insured.

 Kirk Mulhearn, a real estate broker and professional mortgage planner, can be contacted at 562-989-4608  ext. 110.